Raydium (RAY) has broken out of a consolidation pattern, with technical signals now pointing toward a potential rally toward the $4 level.
The breakout follows a period of price compression inside a triangle formation, sparking renewed optimism for short-term gains.
At the time of writing, RAY trades around $3.59, marking a 13% increase over the past week and lifting its market capitalization to $964 million. Analysts suggest that if bullish momentum holds, the token could extend its move toward $4 and beyond.
Fueling this momentum is Raydium’s expanding fee revenue. Its LaunchLab product now generates around $900,000 per day in protocol fees, overtaking swap revenues and strengthening the project’s buyback capacity. With approximately $58 million – equal to 6% of its market capitalization – earmarked for annual buybacks, investor demand could tighten the token’s supply.
More than 35,000 tokens have already launched through LaunchLab’s bonding curve mechanism, though competition from Pump.fun, which captured nearly half of Solana’s memecoin market in July, remains a risk to long-term fee sustainability.
Raydium’s future may also be influenced by Solana’s Firedancer upgrade, expected later this year. The upgrade is designed to boost transaction throughput and improve network reliability, potentially increasing Raydium’s appeal for high-frequency traders and tokenized assets.
Raydium currently processes 95% of Solana’s tokenized equity volume via xStocks, putting it in a prime position to benefit from greater scalability. However, any setbacks in the upgrade could shift liquidity to rival decentralized exchanges.
Overall, RAY’s technical breakout, combined with strong revenue generation and upcoming network improvements, paints a promising picture for the short-term outlook. Still, sustaining momentum will require Raydium to outpace competitors and capitalize on Solana’s broader ecosystem growth.
